StockBB Market Blog Digest : and Kick Ass with Penny Stock

This one looks so hot I just felt like post a bunch of them...

2008 09 05 admin penny stock finder Comments (0) Permalink

These are some nice pics to look at...

2008 09 05 admin penny stock finder Comments (0) Permalink

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Charts gone wild!

In case you haven't noticed, the last couple of days in the market have caused some serious chart damage. As recently as last week, bloggers and analysts were suggesting that the bottom was in and major averages were in rally mode.

Looking at the charts after today's action, the question might more accurately be: how low will we go? Take a look at the following chart of the S&P 500. The index failed to make a serious push above its 50-day moving average. All of a sudden, it has fallen, or more accurately plunged, below the lows of January and March. Those lows now become serious resistance levels. It's no stretch of the imagination to think we'll soon be down in the area of the July lows or worse.

The chart of the Dow Industrials is very similar to that of that of the S&P 500 so we won't present it here.

Whereas we recently wondered whether there was a "stealth rally" playing out on the NASDAQ, it is now clear that there wasn't. The chart below shows the situation.

In the case of the NASDAQ, the index pushed above its 50-day moving average but essentially failed at the 200-day MA. In concert with the other major averages, the NASDAQ has also plunged and is now in the vicinity of its July low.

Are there any signs of life left in this market? In the following chart, we can see that the Russell 2000 has also plunged but as of the close today it remains right at its 200-day moving average. After the last few days of bearishness, this chart is about as good as it gets.

In summary --

The charts are a picture of sudden and severe bearishness. All of the downward moves illustrated above took place on increasing volume. Whereas lack of volume was an issue in August, in September it seems to be indicating an increasing and pervasive pessimism on the part of investors.

What's next? Friday's employment report will be watched closely. With the August results for non-farm payrolls included, the report could push the market further off the cliff if the numbers come in below what are already low expectations.

2008 09 04 admin market commentary
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Top 3 Stocks : HKBV, SPSI, EGSR

The following are the Top 3 Stocks as of Thursday, September 04, 2008 3:00:10 PM

#1 Stock is HKBV

#2 Stock is SPSI

#3 Stock is EGSR

2008 09 04 admin penny stock finder Comments (0) Permalink

Two more nails in the NAND coffin?

As if there wasn't enough bad news circulating around NAND chip pricing, we have the following two items of note:

ThinkPanmure analyst Vijay Rakesh released a research note today. He indicates NAND spot pricing for 8Gb and 16Gb chips, among the most common types, are down more than 35% for the quarter so far. He specifically mentions SanDisk (SNDK) and the prospect that the company's margins may be squeezed into negative territory. To add insult to injury, he also points to rising inventory levels at SanDisk and other OEMs.

As if there wasn't already a glut of NAND supply available in the market, Hynix Semiconductor just announced the grand opening of its new NAND fab in Korea. Samsung, Toshiba (a SanDisk partner) and the Intel-Micron joint venture have also been ramping up new NAND fabs. Whereas the aforementioned suppliers seem to be showing some restraint in terms of flooding the market with product, it is not known what Hynix plans to do. As the third largest NAND supplier, Hynix has the ability drive prices even lower. Some in the industry fear exactly that and worry that NAND pricing will not see a recovery until the second half of 2009.

In summary, this appears to be a good time to stay away from any stocks whose core business is focused on manufacturing or supplying NAND memory chips. For U.S. investors, that primarily means the downtrodden shares of SanDisk.

Sources:

SanDisk: Report NAND Spot Prices Down 35% Qtr To Date
Will Hynix' new fab prolong NAND glut?

Disclosure: none

2008 09 03 admin semiconductors
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Top 3 Stocks : EXPH, DYMH, TRNP

http://www.thehotpennystocks.com

The following are the Top 3 Stocks as of Wednesday, September 03, 2008 3:00:09 PM

#1 Stock is EXPH

#2 Stock is DYMH

#3 Stock is TRNP

2008 09 03 admin penny stock finder Comments (0) Permalink

Alert HQ rocket stock - Sanmina up again despite down market

For those of you have downloaded the Alert HQ BUY and SELL signals recently, you may have noticed that Sanmina-SCI Corporation (SANM) was on the alert list based on weekly data back on August 16 and again this past weekend

I have been eyeing this stock since it popped up on the list the first time. It had a beaten down share price whose recent rally generated the TradeRadar BUY signal. Apparently, many other investors are also taking notice and buying with enthusiasm. It has attracted the attention of Barron's Tech Trader Daily blog. Writer Eric Savitz had the following to say (I include the entire post as it is rather brief):

"There sure are a lot of people piling into Sanmina-SCI (SANM) shares. But there’s still no obvious reason for the move.

A I noted last week, the contract electronics manufacturer’s shares have been on an absolute tear.

To review: On July 14, the stock his a 14-year low at $1.07, and has been climbing relentlessly ever since. The initial spur for the stock was the company’s July 15 announcement that June quarter results were ahead of expectations; the actual results were reporting a week later, along with a plan for a reverse stock split. (Somewhere between 1-for-3 and 1-for-10, the company said.)

Since then, it has been off to the races. Today, the stock is up 20 cents, or 8.5%, to $2.55. In the last four days alone, the stock is up 25%. Since its bottom in July, the shares have gained 138%. One commenter on the previous post theorized that that the company might be a target for rival Flextronics (FLEX), which today happens to be off 25 cents, or 2.8%, to $8.67. That seems like a reasonable explanation for the move; whether anything is actually going on I have no idea."

The rapid ascent of SANM is clearly visible in the following chart. Note also the cross-over of the 20-day moving average over the 50-day moving average, typically a very bullish development.

With a puny Price/Sales ratio of 0.12 and PEG ratio of 0.65, the company is sporting numbers like a value stock, not a tech stock. Despite a closing price today of only $2.62, the company is no micro-cap; its market capitalization is $1.39B. The company is now free cash flow positive. It is also nearing the end of a restructuring phase and embarking on increasing capacity in India.

The recent rally leaves SANM clearly in over-bought territory but the company would be pretty tempting on a pull-back.

Source: Sanmina: The Rally Continues

Disclosure: none